The Covid-19 pandemic has completely altered consumer habits. People have shifted their spend from travel to other categories like groceries and restaurants/food delivery apps. Amex was at the forefront in revamping their card portfolio in response to the changing market conditions. Similarly, Chase also launched their ‘Pay with Points’ feature on their cards. A new study hints that this could well be the norm going forward as more issuers and financial institutions jump on the bandwagon.

More Issuers Exploring ‘Pay with Points’ Options

Amazon has already been at the forefront while pushing this feature to customers. We often see the ‘40% off when you use one point ‘or similar offers. These offers are intended to get customers to link their credit cards and use their points at these online retailers.

Similarly, PayPal is also looking to offer similar features. These are all driven by the fact that people are now using their points elsewhere instead of just using them for travel. This report delves into how PayPal is looking at the market dynamics as it makes changes.

“More and more people across the country are turning to their credit card rewards as a helpful and easy way to make their dollars go further,” Jill Cress, PayPal’s vice president of consumer marketing, said in a statement. “And in the current environment, two-thirds of Americans (66 percent) now view these rewards balances as a way to buy the things they need, such as groceries and other essentials.”

PayPal study also found that nearly 40 percent of cardholders don’t even know how many points they have, calling that “an opportunity for more people to uncover funds [that] could extend their budgets and help them buy the things they need most.”

The Pundit’s Mantra

After major issuers like Amex, Chase and Citi, I won’t be surprised if more issuers make similar announcements. Many issuers are looking to offer options to customers in order to help them wipe liabilities of their balance sheets. More often than not, you’ll get a 1 cent per point value or less when you convert most points currencies into cash.

How you use your points depends on your personal situation and how badly you need cash at a given point of time. In this post, I’ve tried to answer the key question – whether you should convert your points into cash as opposed to only using them for travel.


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With this card, you’ll not only earn a free night each year when you renew the card, but If you pair it with this limited time offer, you’ll also earn 25% points back when you redeem your points until October 8, 2020.


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Disclosure: The Points Pundit receives NO compensation from credit card affiliate partnerships. Support the blog by applying for a card through my personal referral links. This article is meant for information purposes only and doesn’t constitute personal finance, health or investment advice. Please consult a licensed professional for advice pertaining to your situation.